Ethereum News Today: Banks Can Now Hold Crypto, Advancing U.S. as Global Digital Asset Hub

The U.S. Office of the Comptroller of the Currency (OCC) has affirmed that national banks may hold cryptocurrencies on their balance sheets to pay blockchain network fees, marking a significant step in integrating digital assets into traditional banking operations. The guidance, outlined in Interpretive Letter 1186, clarifies that banks can retain crypto assets "as principal" to cover transaction costs-commonly referred to as "gas fees"-on blockchain networks, provided the activities are incidental to permissible banking functions.

The OCC emphasized that this authority extends to holding crypto for testing platforms related to digital assets, whether developed internally or acquired from third parties. The agency cited Ethereum as an example, noting that transactions on the network require ETH to execute, and highlighted the operational risks and costs associated with relying on third-party intermediaries for such fees. By permitting banks to maintain small reserves of native tokens like ETH, the OCC aims to reduce counterparty risk and streamline operations for blockchain-based services.

The move aligns with broader regulatory shifts under the Trump administration, which has sought to position the U.S. as a global crypto hub. Earlier this year, the OCC rescinded restrictive Biden-era policies that required banks to seek prior approval for crypto activities. It also permitted banks to custody crypto for clients and participate in stablecoin initiatives under the newly enacted GENIUS Act according to reports. The latest guidance reinforces these efforts, enabling banks to manage digital asset-related costs as part of their standard operations as reported.

Industry experts view the decision as a catalyst for institutional adoption. Major banks, including JPMorgan Chase and Bank of America, are reportedly preparing to launch crypto custody services and dollar-backed stablecoins as reported. The OCC's stance also addresses practical challenges, such as the need for banks to hold tokens for settling trades or testing distributed ledger systems.

However, the agency stressed that banks must conduct these activities "in a safe and sound manner and in compliance with applicable law," underscoring ongoing risks related to market volatility, cybersecurity, and liquidity management as emphasized. The amount of crypto held should remain proportionate to the bank's capital, reflecting a measured approach to innovation.

As lawmakers continue drafting federal rules for digital assets-including a proposed market structure bill- the OCC's guidance provides immediate clarity for banks navigating the evolving landscape. This development could accelerate the integration of blockchain technology into core banking functions, bridging traditional finance and the crypto ecosystem.